Overview
SEC_CODE_REF_0090001192884
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Bank Service Corporations
(BSCs) are corporations or LLCs that are owned and controlled by one or more
banks to perform services for banks and other depository institutions (including
credit unions
With
certain exceptions, the banks that control the BSC must be located in the same
state.
Services
performed by the BSC must be performed at a location at which the banks could
perform the services and must be of a type that the banks could perform
themselves.
- Note, however, that BSCs may not take
deposits.
Banks
must apply to their primary federal regulator to form or acquire a BSC unless
the BSC's services are limited to clerical and accounting services such as:
- check and deposit sorting and posting
- posting of interest and other credits and debits
- preparing and mailing checks, statements and
notices.
With
the approval of the FRB, BSCs may also provide services that were permissible
for Bank Holding Companies under the Bank Holding Company Act (12
USC 1843(c)(8)) on November 11, 1999.
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